linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity. …

set as an increasing function of the inflation rate, the price level is determinate for intermediate values of the … inflation elasticity of the feedback rule and is indeterminate for both very low and very high values of the inflation …

linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due … properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has … inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity …

fundamental public finance principle whereby when taxes on all final goods are available, it is optimal to tax final goods … source of income. Furthermore optimal consumption and income taxes do not respond to government purchases shocks and the … Friedman rule is optimal only if the Ramsey planner has access to consumption taxes. …

fundamental public finance principle whereby when taxes on all final goods are available, it is optimal to tax final goods … source of income. Furthermore optimal consumption and income taxes do not respond to government purchases shocks and the … Friedman rule is optimal only if the Ramsey planner has access to consumption taxes. …

to be a central goal of optimal monetary policy. The optimal rate of inflation under an income tax regime is half a … frictions that in isolation would call for a volatile rate of inflation—particularly nonstate-contingent nominal public debt, no … lump-sum taxes, and sticky wages. Under an income-tax regime, the optimal income tax rate is quite stable, with a mean of …

the nominal interest rate is set as a function of output and inflation and taxes are set as a function of total government … inflation coefficient in the interest rate rule plays a minor role for welfare. It matters only insofar as it affects the …

income taxes, printing money, and issuing one-period nominally risk-free bonds. The main findings of the paper are: First … of inflation is near zero. This result stands in stark contrast with the high volatility of inflation implied by the …

-type interest rate feedback rules. That is, rules whereby the nominal interest rate is set as an increasing function of inflation … with a slope greater than one around an intended inflation target. This paper shows that such rules can easily lead to … chaotic dynamics. The result is obtained for feedback rules that depend on contemporaneous or expected future inflation. The …